At the start of last year, the council of mortgage lenders predicted that buy to let mortgage lending would reach £11 billion in 2011. In actual fact, the figure was closer to £13 billion, nearly 10% of the overall mortgage lending market.
There are many reasons why the buy to let market continues to flourish, including an increase in the number of buy to let mortgages available from an increasing number of lenders, the ability of first time buyers to get a mortgage, continued concern about stability in the job market and the continued supply/demand gap for rental properties.
An increased number of buy to let lenders is good news for landlords. More competition means that buy to let mortgages are becoming increasingly available, at ever more competitive rates. There are multiple lenders offering buy to let mortgages of 80% LTV, and one offering up to 85% LTV.
With demand for rental properties is expected to continue for the foreseeable future, experts are predicting a good year for buy to lets in 2012.